Hong Kong financial secretary John Tsang has announced a proposal to
lower port dues to encourage ships to switch to cleaner fuels while at
berth in Hong Kong.

“To encourage more carriers to switch to cleaner fuels when berthing in
Hong Kong waters, I propose to reduce by half the port facilities and
light dues charged on ocean-going vessels using low sulphur fuel while
at berth in Hong Kong,” Tsang said in his 2012-2013 budget speech on
Wednesday.

He added that the incentive, which will span three years, will cost the
government HK$260 million ($41.2 million).

In his speech, Tsang highlighted a shipowners’ initiative to switch to
cleaner fuels in Hong Kong under the Fair Winds Charter agreement, which
is effective from January 1, 2011 to December 31, 2012.

“While developing its services, the shipping industry is also very
concerned about environmental protection,” he said.

The Hong Kong Liner Shipping Association (HKLSA) in November last year
called for the local government’s support on the fuel switch efforts in
view of rising bunker fuel prices.

HKLSA Secretary Roberto Giannetta said then that the shipping companies’
ability to continue to “solely absorb” the increasing cost over an
extended period of time is “very doubtful.”